Back to top

Kroger (KR) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Kroger (KR - Free Report) closed the most recent trading day at $22.96, moving +0.66% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.61%.

Prior to today's trading, shares of the supermarket chain had lost 11.64% over the past month. This has lagged the Retail-Wholesale sector's loss of 8.22% and the S&P 500's loss of 6.3% in that time.

Investors will be hoping for strength from KR as it approaches its next earnings release. The company is expected to report EPS of $0.72, down 1.37% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.89 billion, down 1.71% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $122.19 billion. These totals would mark changes of +5.21% and +0.85%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KR. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. KR is currently a Zacks Rank #3 (Hold).

Investors should also note KR's current valuation metrics, including its Forward P/E ratio of 10.27. This valuation marks a discount compared to its industry's average Forward P/E of 13.75.

Meanwhile, KR's PEG ratio is currently 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Supermarkets was holding an average PEG ratio of 1.37 at yesterday's closing price.

The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow KR in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


The Kroger Co. (KR) - free report >>

Published in